Woodside share price charging higher on North West Shelf approval

Woodside has been working more than six years to gain an extension for its North West Shelf gas project.

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The Woodside Energy Group Ltd (ASX: WDS) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed up 3.2% yesterday trading for $22.12. In morning trade on Thursday, shares are changing hands for $22.40 apiece, up 1.3%.

For some context, the ASX 200 is up 0.3% at this same time.

Today's gains follow on yesterday's intra-trading day approval, announced by Federal environment minister Murray Watt, to extend Woodside's North West Shelf Project operations by another 45 years.

Here's what's happening.

Worker on a laptop at an oil and gas pipeline.

Image source: Getty Images

Woodside share price lifts on North West Shelf extension

The Woodside share price is catching some welcome tailwinds from the Federal government's long-awaited decision on the North West Shelf Project.

Located in Western Australia, the project includes a network of offshore oil and gas infrastructure and an onshore gas plant.

The project began operating 40 years ago, and Woodside has been working to secure approvals to keep it going for more than six years now. The company has faced stiff opposition and numerous legal appeals from environmental groups and locals concerned over potential damage to Indigenous heritage sites.

The Woodside share price received some added support in December after the Western Australian government green-lit the extension. Woodside said that the agreement included plans to significantly reduce air emissions and measures to manage greenhouse gas emissions and to reduce them over time.

The company said it is engaging in "meaningful consultation" with traditional owners as part of these conditions, including complying with all air quality objectives and standards arising from the Murujuga Rock Art Monitoring Program.

What did management say?

Commenting on the Federal government's approval that looks to be boosting the Woodside share price today, chief operating officer Australia Liz Westcott said the proposed Federal government approval will provide certainty for the ongoing operations at the site.

"This proposed approval will secure the ongoing operation of the North West Shelf and the thousands of direct and indirect jobs that it supports," she said.

Westcott added:

This nationally significant infrastructure has supplied reliable and affordable energy to Western Australia for 40 years and international customers for 35 years and will be able to continue its contribution to energy security.

Since starting operations in 1984, the North West Shelf Project has paid over AU$40 billion in royalties and taxes, and supported regional development opportunities in the Pilbara.

The ASX 200 oil and gas company said it is now reviewing the Federal government's proposed conditions to understand their application.

With today's intraday gains factored in, the Woodside share price remains down 10.3% in 2025. Shares are now up 17.0% since the recent lows on 9 April.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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